Question: A) Can risk be eliminated? Why or why not? Clearly identify the all economic agents, pricing mechanisms, and strategies involved to add proper context and
A) Can risk be eliminated? Why or why not? Clearly identify the all economic agents, pricing mechanisms, and strategies involved to add proper context and understanding to your response.
B) Identify and describe the Efficient Market Hypothesis (EMH). Is EMH related to the efficiency of prices? Why or why not?
C) Identify and describe three methods used to settle a futures contract discussed in lecture. Rank each method from most common to least common and provided a justification for your ranking.
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